Tesla Motors (TSLA) Target Raised to $200 at Deutsche Bank; Analyst Sees Limited Negative Catalysts

September 18, 2013 5:40 PM EDT
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Price: $244.73 +0.40%

Rating Summary:
    17 Buy, 13 Hold, 9 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Deutsche Bank maintained a Buy rating on Tesla Motors (NASDAQ: TSLA) and raised its price target to $200.00 (from $160.00). Analyst Dan Galves noted progress on margin and thinks demand appears strong.

"Based on conversations with mgmt and monitoring information available on Tesla owners’ blogs, we believe that the company is on-track to modestly outperform Q3 margin expectations, that demand has continued to grow in the US and Europe (despite substantial option pricing increases in effect as of late July), and that the production rate at Tesla's factory has continued to increase," said Galves.

"As Tesla continues to execute to margin targets and demonstrate strong demand for their product, confidence in the late-decade volume, margin, and earnings estimates that justify upside to the current valuation will likely grow. We believe that this, along with still-high short interest (~22% of Free Float; ~18MM shares, ex convert hedging), provides a good set-up through at least the end of 2013. With better visibility on the metrics that the Street is focused on (margin and demand), we see limited potential for negative catalysts in the near term," he added.

For an analyst ratings summary and ratings history on Tesla Motors (NASDAQ: TSLA) click here. For more ratings news on Tesla Motors click here.

Shares of Tesla Motors closed at $166.23 yesterday.

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